Problem:
The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project.
Required:
Question: What value, if any, should be assigned to the press as an initial cost of the new project?
- $0
- $250
- $2245
- $2570
- $2495
Note: Please provide equation and explain comprehensively and give step by step solution.